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Why Your Business Needs To Be Insured

Jun 3, 2008
Property insurance covers for the damage to the location of the business and its contents, even those that are consigned to you. There are two types of property insurance: the Broad Form - categorizes a list of disasters and protects against loss from all causes specified in the policy; and the Single or Specific Peril -insures against loss only from the specified risk. The premium will be higher if there are more types of loss covered. Property insurance can recompense damages or loss through: Actual Cash Value - original value of the property loss; and Replacement

Make sure your insurance coverage is up to date. - you may have started with a small business requiring a minimal amount of insurance but as your business grows, you'll need to cover for all the things you've added. If possible obtain additional policies to cover for them.

Have emergency cash stashed away. - if anything happens, you will have something on hand to start with until you recouped your losses.

Inform people about your disaster plan - letting your employees know about your plan will prepare them in case of anything happening and avoid panic. Informing your customers will assure them that you won't let them down whatever the circumstances are.

A business owner should know how to protect his business. Following is a list of simple strategies to help you set up a disaster plan:

Draw a disaster plan - fire, earthquake or other natural disasters could cause damage to your business take into account everything that can happen and plan for a course of action. Be prepared to have an alternative location for your goods as well as the safety measures you have installed in your place.

Make back-ups of your files and store them in another site and do this regularly.

Keep paper documents and records offsite - your records are your business' identity and in cases where you have to prove this, it would be best to present the original documents.

It is the protection against loss or damage for which you pay a certain sum periodically in exchange for a guarantee that you will be compensated under stipulated terms and conditions.

Operating any type of business has risks. It is advisable to all business owners is to have the right kinds of insurance. If you have employees, you're obligated to provide employees a safe place to work, furnish appropriate and safe tools, and set up and enforce proper rules of employee conduct as they relate to safe working procedures.

As an employer, you also have to look into the safety and concern of your customers, clients, and the public.

A spokesperson has said that the reform package would drive up auto insurance rates, not lower them. She said places that require prior approval for rate hikes sometimes take as long as two years to make a decision, which in turn drives insurance companies to ask for even higher rates because they can't predict what will happen that far out.

Already, laws in certain areas require health insurance carriers to submit rate increases with supporting information and that the Division of Insurance has the authority to reject rates that are deemed inadequate, excessive or discriminatory.

Rate increases are supposed to be driven by technology and improvements in health care, not profit, waste and administration as critics charge.
About the Author
Jon Caldwell is a professional content manager. Much of his articles can be found at http://basicbusinessinsurance.com
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